strategic marketing lectures 4

8/19/2019 Strategic Marketing Lectures 4

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Powerpoint Templates

Module: Strategic Marketing

Instructor: Bilal Ahmad

LECTURE: Strategic market

segmentation

Introduction

http://www.powerpointstyles.com/http://www.powerpointstyles.com/


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• Identification of Market segments

• Buyer’s needs, preferences and purchase

behavior

• Formation of market segments

• ustomer group identification

• Forming group base on !esponse

differences

• Finer segmentation strategies

"earning #utcomes



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• $electing the segmentation strategy

• $trategic analysis of market segments



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• Identifying market segments – $egmentation variables

– haracteristics of people and organi%ations•

onsumer markets• #rgani%ational markets

• Product use situation segmentation

• Buyers’ needs and preferences

– onsumer needs

– &ttitudes

– Perceptions

• Purchase behaviour



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• $egmentation variables – $egmentation and targeting of customers allows the

marketer to deliver a product within the target audience

needs and wants 'Pickton and Broderick, ())*+ -.

Identification of Market segments

Buyers’ Needs/Preferences

Use

Situation

Characteristics of People/Organizations

Purchase

Behavior



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Illustrative $egmentation /ariables

Characteristics

of people/

organizations

Consumer Marets

Organizational Marets

&ge, gender, income,

family si%e, lifecycle

stage, geographic

location,

lifestyle

Type of industry, si%e,

geographic location,

corporate culture, stage of

development, producer0

intermediaryUse situation #ccasion, importance of

purchase, prior

e1perience with product,

user status

&pplication, purchasing

Procedure 'new task,

modified rebuy, straight

rebuy

Buyers’ needs/

preferences

Brand loyalty status, brand

preference, benefits sought,2uality, proneness to make

a deal

Performance re2uirements,

brand preferences, desiredfeatures, service

re2uirements

Purchase

!ehavior

$i%e of purchase,

fre2uency of purchase

/olume, fre2uency

of purchase



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• 51ample+

• &stra0Merck segmentation based on6 – 7ealth care as business

• are administrator

– Traditional• Physicians with standard patient needs

– ost sensitive• Physicians for whom cost is paramount

– Medical though leaders• People on leading edge

Product use situation

segmentation



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– 4eeds and preferences• $pecific to product

• $pecific to brand

• 8sed as segmentation bases

• 8sed as segmentation descriptors

– ustomer needs

– &ttitude

– Perceptions

Buyer9s needs and Prefrences



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• ustomer needs – Basic physiological needs

– 4ature and intensity of needs

–Better solution 'Filling the gap.

• &ttitudes – &ttitude influence behavior

–

Marketing strategy development




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• Perception – Process by which an individual selects,

organi%e, and interprets information inputs to

create a meaningful picture of the world6'Bernard and :ary, ;7uman behavior?@.

– 5valuation of Positioning strategy

– $trategic management of Positioning strategy




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• Purchase behavior – onsumption variables

– /olume of purchase

–!M system

– "oyalty Program




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• Purchase behavior




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• "evels of involvement

Forming Market segments

"ow involvement

7abitual 3ecisions

56g66 tea, toothbrush

Moderateinvolvement

$imple decisions

56g6 Face wash,snacks

7igh Involvement

"engthy decisions

56g6 ar, 8niversity



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–

!e2uirements for segmentation• !esponse differences

• Identifiable segments

• &ctionable segments

• ost0benefits

• $tability

– &pproaches to segment identification

– ustomer group identification

– Forming groups based on response differences

Forming market segments



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•

51ample• Miller genuine draft A

– ;mainstream sophisticates<

• Milwaukee’s Best "ight A – ;hardworking men<

• Pilsner 8r2uell A

– ;beer afficionados<

• Miller Icehouse A – for ;drinking buddies<

Forming market segments



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Beer market demographics



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• !esponse differences

• Identifiable segments

• &ctionable segments

• ost0benefits of segmentation

•

$tability over time

• Product 3ifferentiation and market

segmentation

!e2uirements for segmentations



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$egmentidentification

B$tart withcustomer

response profile

&$tart withidentifiers of

customer group

&pproaches to segment identification



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• Management insight and available

information

• ross classification analysis

• 3ata Mining for segmentation

• $egmentation illustrations

ustomer group identifiaction



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• ustomer relationship management '!M. – luster analysis

– Perceptual maps•

Product market area• ompetitor analysis

• Buyer’s perception analysis

• Map preparation

Forming group based on response

differences



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– "ogic• ustomi%ed offerings

• 3iverse customer base

• lose customer relationships

– Finer segmentation strategies• Microsegmentation

• Mass customi%ation

• /arietyseeking strategy

Finer segmentation strategies



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– 3eciding how to segment

– $trategic analysis of market segments• ustomer analysis

• ompetitor analysis

• Positioning analysis

• 5stimating segment attractiveness

• $egmentation ;fit< and implementation

$electing the segmentation strategy



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• &nticipating the future – Boundaries and composition of Product market

– 5nduser customer base

–Market and industry transformation

– Potential threats

– /alue chain composition and structure

– Product life cycle phaseC

$trategic vision about future

strategic marketing lectures 4

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